An alternative solution to an economic order quantities for recoverable item inventory systems

Abstract

In this paper we analyze a reverse logistics inventory model investigated by Teunter (2001). Demand of a product can be satisfied with newly manufactured and remanufactured products. The used products are collected and then returned to the manufacturer of the product. The returned items are inspected and some of the used products are disposed outside. The rate of reuse is decision variable in this model. The goal of the decision maker is to minimize the relevant costs. The aim of this paper is to reexamine the proposed model and to improve some small mistakes. First, we show that it is comfortable to determine the batch numbers of the manufacturing and remanufacturing activities, because these decision variables are integer, rather than the manufacturing and remanufacturing lot sizes. Secondly, we show that there exist optimal solutions for the batch numbers inside of the possible set, i.e. both manufacturing and remanufacturing batches could be higher than one. Thirdly, the above mentioned paper have not ana lyzed a case with one batch numbers both manufacturing and remanufacturing. This case can occur for some parameters.